Ferrari NV, (NYSE:RACE), is on the rise this morning. It reported a 21 percent annualised growth in its profit for the full year to EUR1.53billion ($1.58billion).
The luxury sports carmaker also said that its bottom and top lines would grow in 2025, thanks to a stronger product mix and heightened demand for customization.
Ferrari’s adjusted EBITDA is expected to reach EUR2,68 billion by the end of this year, a significant increase over EUR2.56 in 2024.
The Italian company also called on Tuesday for an increase of 5.0% in revenue over the full year.
Ferrari 2024’s shipments are dominated by electric vehicles
Ferrari’s name is rarely heard in discussions about electric cars.
The luxury carmaker still has a strong EV strategy.
It may even be ahead of legacy carmakers such as Ford and General Motors in this regard.
Ferrari will deliver six hybrid engines in 2024. This represents 51% of the total number of shipments.
More than half the hybrids that were shipped in 2013 are now available.
Ford Motor’s electrified vehicle deliveries (which include hybrids) were 38% lower than GM.
Ferrari’s stock has risen by about 4.0% since the company released its annual earnings report on Tuesday.
Ferrari is soon to unveil an all-electric vehicle
Ferrari does not “need” to move to electric cars to remain competitive.
Even if the world switches to EVs, Ferrari’s internal combustion engines (ICEs) could continue selling like hotcakes. This is because owning a Ferrari means more than just owning a vehicle. It also represents a heritage, a sign of prestige, and a work of art.
Even so, luxury car maker Jaguar is committed to the switch to electric cars.
The company is expected to launch its first fully electric model at the end of 2018 and begin production by 2026.
Ferrari shares also yield a dividend of 0.57 percent at the time this article was written.
Ferrari doesn’t need to wait until EVs are profitable
Ferrari’s plans to launch a fully electric car are exciting not only because the company is well positioned for a quick profit.
This puts Tesla further ahead of many other EV manufacturers, who are still chasing profitability.
Benedetto Vigna, the CEO of Ferrari said to investors today in the earnings report:
In 2025, we expect to continue our robust growth that will enable us to achieve the highest end of many of our profit targets in 2026 one year earlier.
Wall Street has currently given Ferrari stock a “overweight rating” by consensus.
The average price targets indicate that there is potential to gain another 12% from the current level.
The post Why Ferrari’s EV Strategy is Ahead of Ford and GM could be updated as new information becomes available.
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